EVM EVM Variance Analysis and Interpretation

Question 1

What does a negative Cost Variance (CV) indicate in EVM?

Accepted Answer

The project has spent more than the earned value

Answer

The project is ahead of schedule

Answer

The project is under budget

Answer

The project has completed more work than planned

Question 2

What is the correct formula for Schedule Variance (SV)?

Accepted Answer

SV = EV - PV

Answer

SV = AC - PV

Answer

SV = BAC - EAC

Answer

SV = EV - AC

Question 3

A project has an Earned Value of $400,000 and a Planned Value of $500,000. What is the Schedule Variance?

Accepted Answer

-$100,000

Answer

+$100,000

Answer

$900,000

Answer

$0

Question 4

What does Variance at Completion (VAC) represent?

Accepted Answer

The expected cost overrun or underrun at project completion

Answer

The difference between planned and actual schedule

Answer

The total earned value of the project to date

Answer

The remaining authorized budget for the project

Question 5

A positive Schedule Variance (SV) indicates which of the following about a project?

Accepted Answer

The project is ahead of schedule

Answer

The project is over budget

Answer

The project is behind schedule

Answer

The project has a favorable cost position

Question 6

What is the correct formula for Variance at Completion (VAC)?

Accepted Answer

VAC = BAC - EAC

Answer

VAC = EV - AC

Answer

VAC = EV - PV

Answer

VAC = BAC - AC

Question 7

Which of the following best describes a 'favorable' variance in an EVM context?

Accepted Answer

Actual performance is better than what was planned

Answer

The project is spending exactly as planned

Answer

The project has a zero variance on all metrics

Answer

All variances are within 10% of the baseline